Putting Developing Countries in the Driving Seat:

Support for Direct Access

Rebecca Carman

16 September 2010

United Nations Development Programme

The Adaptation Fund

• Financial instrument under UNFCCC and Kyoto Protocol

• Proposed in 2001; became operational October 2009

• As of July 2010: US$ 170M in funds; $9.5M disbursed

• Countries submit proposals via Multilateral Implementing Entity (MIE) or National Implementing Entity (NIE)

• Six accredited MIEs to date• United Nations Development Programme• United Nations Environment Programme• World Bank• Asian Development Bank• International Fund for Agricultural Development • World Food Programme

The Adaptation Fund

Innovative elements

• Financed by 2% of proceeds from Certified Emission Reductions (CERs) issued for Clean Development Mechanism projects + donor pledges (i.e., Germany, Spain)

• Adaptation Fund Board has 16 members and 16 alternate members – 14 from developing countries

• Offers opportunity for direct access• 21 countries expressed interest• 10 applications• 3 approved

• Senegal (Centre de Suivi Ecologique)• Jamaica, Uruguay

What does direct access mean?

• Country has an accredited NIE that meets AF Board’s international fiduciary and management standards

• NIE prepares and submits its own project applications

• No preparatory funds for project development (unlike GEF)

• Full responsibility for overall management of projects and programmes financed by Adaptation Fund

• Full responsibility for all financial monitoring and reporting

• 8.5% (maximum fee) for management/oversight

Benefits and challenges

Benefits• National ownership & prioritisation• More efficient• Potential for multi-stakeholder engagement

Challenges

• Identifying appropriate institution• Understanding and completing fiduciary

requirements• Ensuring stakeholder engagement (civil sector,

private sector, gender)• Potential conflicts of interest

Proposed multilateral support

Joint proposal from UNDP, UNEP and WB for support to:

1. NIE application process

2. Strengthen national institutional capacities

To be piloted in 4 countries, scaled up as needed subject to funding

Elements include:

• Guidance note on NIE accreditation requirements, roles and responsibilities

• Screening tool for selecting appropriate institution for NIE

• Tools and indicators to assess capacity for complying with standards

• Support to implement capacity development strategy and action plan

• Support for preparing NIE application

Resources

1. Adaptation Fund: http://adaptation-fund.org/

2. Fast Start Finance: http://www.faststartfinance.org/

• Countries input national data (around 67% Fast Start funds to date distributed bilaterally)

3. WB/UNDP Climate Finance Platform

• Learn about climate financing issues (Glossary, Library, Links)

• Plan project (On the Ground, Library)

• Find out if project is feasible (Tools) and how and who can finance it (Funding Sources & Tools)

• Implement project and collaborate with other CFO users (coming soon)

• 50 analyses of wide array of climate funding sources complete with application instructions and contact info

• With expand to include private sector and philanthropic funds